NRG Energy Makes Bid for SunEdison Wind and Solar Projects
August 09 2016 - 4:40PM
Dow Jones News
SunEdison Inc. is seeking bankruptcy-court approval to sell a
number of North American solar- and wind-power projects to NRG
Energy Inc. for $144 million, subject to higher bids.
SunEdison on Tuesday filed papers in its chapter 11 case
outlining plans to auction its ownership stakes in the companies
that construct large-scale renewable-energy facilities and sell
wind or solar power to utility and other customers. The projects up
for sale are located in Utah, California, Maine, Hawaii, Texas and
Washington, court papers say.
The value of NRG's $144 million bid could ultimately climb to
$188 million, as it includes the potential for SunEdison to collect
up to $44 million after the sale closes depending upon the
achievement of certain milestones related to the projects.
SunEdison wants to declare NRG's renewable-energy unit the
stalking horse, or lead, bidder in a sale process that would
include a Sept. 6 deadline for bids, Sept. 9 auction and Sept. 15
court hearing to approve the winning bid.
In return for setting a floor price for the assets, court papers
show NRG could collect a $4.5 million expense reimbursement and
$5.5 million breakup fee if a rival bidder prevails.
NRG said Tuesday in a statement that its bid "further reaffirms
our ongoing commitment to renewable energy."
The U.S. Bankruptcy Court in Manhattan set an Aug. 18 hearing to
review the proposed auction timeline. Court papers show that a
"go-dark" provision is in effect until the court blesses the
timeline—until that happens, SunEdison won't be able to shop the
assets to rival bidders.
In connection with the proposed sale, SunEdison on Tuesday
placed the companies that own the equity interests in the renewable
energy projects into bankruptcy protection.
SunEdison itself sought chapter 11 protection in April in the
hopes of restructuring. Meanwhile, it has been selling off parts of
its portfolio. Last month, for instance, court papers show the
company won approval to sell its stake in a California solar
project to D.E. Shaw for $80 million.
Write to Jacqueline Palank at jacqueline.palank@wsj.com
(END) Dow Jones Newswires
August 09, 2016 16:25 ET (20:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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